The landlord typically pays for the background check of a tenant. This is done to ensure the legitimacy of the tenant and to protect the property and other tenants.
who pays for background check tenant or landlord? The landlord also has the right to charge an application fee to cover the cost of the background check.
However, in some cases, landlords may require the tenant to cover the cost of the background check. This may be outlined in the lease agreement or discussed beforehand.
The Basics Of Background Checks
Background checks are essential for landlords when renting out a property. A background check is a screening process to verify a potential tenant’s personal information, credit score, criminal record, and rental history. This process helps landlords determine if the applicant is a risky tenant.
Often there is confusion, who pays for background checks, landlords or tenants? Let’s find out.
What Are Background Checks?
A background check is a verification process that landlords use to examine a potential tenant’s history. It includes personal information, employment verification, credit reports, criminal records, and past rental history.
This screening helps landlords determine whether the applicant is trustworthy and qualified to occupy the rental property.
What Information Is Included In A Background Check?
The information found in a background check varies, and it depends on the landlord’s requirements. Some landlords may only look at the applicant’s credit score, while others may investigate their entire history. Here are some of the commonly researched fields in a background check:
- Personal information: Name, social security number, date of birth, and driver’s license information
- Credit score: Payment history, credit usage, and long-term debts
- Criminal records: Past felonies, misdemeanors, or criminal convictions
- Rental history: Previous rental addresses, landlord references, and eviction or violation records
Why Are Background Checks Important For Tenants And Landlords?
There are several reasons why background checks are an essential aspect of the rental process.
- For landlords, background checks are a way to mitigate risks associated with renting out a property. They can avoid potential scams, damage to property, or other criminal activities.
- Tenants benefit from background checks as well. A clean history means a better chance of securing the property. Tenants can also use the information provided in the report to contest any incorrect data.
- Background checks increase transparency and reduce liability for both parties. Landlords will have evidence of why they rejected a tenant application, and tenants can receive an objective decision based on verifiable data.
Background checks are necessary for landlords and tenants to ensure transparency and reduce risk.
Generally, landlords are responsible for paying the cost of background checks, but this is negotiable. It is essential to check with the state laws to determine if this cost can be passed on to tenants.
Choosing a reliable tenant can go a long way in minimizing potential risks and ensuring a smooth rental experience.
Who Should Cover The Cost Of Background Checks?
Background checks are an essential part of the tenant screening process for landlords. It helps them have an understanding of the kind of tenants they are renting their property to.
However, when it comes to the cost of these background checks, it is normal for both parties to have different opinions about who should pay.
Legal Obligations Of Landlords And Tenants Regarding Background Checks
Both landlords and tenants have legal obligations when it comes to background checks. Here are the legal requirements each party should consider:
Landlords
- It is legal for landlords to perform a background check on their potential tenants.
- They cannot perform a background check without the tenant’s consent.
- The background check must comply with the fair credit reporting act (fcra).
- Housing laws prohibit landlords from discriminating against tenants based on race, religion, nationality, and other personal factors.
Tenants
- Tenants have the right to give or refuse consent for the background check.
- The tenant has the right to obtain a copy of the background report.
- If the tenant is denied the rental or anything else based on the background check, the landlord must provide them with a copy of the report.
Pros And Cons Of Tenants Paying For Background Checks
Here are some of the benefits and drawbacks of tenants paying for background checks:
Pros
- The cost may be lower than what the landlord would pay.
- It shows the tenant’s commitment to finding a rental property.
- It could speed up the application process.
Cons
- It may be financially inconvenient for the tenant.
- The tenant may not have access to comprehensive background check information.
- It can set a negative precedent for tenants paying additional fees in the future.
Tips For Negotiating Who Pays For The Background Checks
Here are some tips for negotiating who pays for the costs of background checks:
- Discuss the matter with the landlord and determine how necessary a background check is.
- If the landlord insists on the tenant paying, kindly ask if there is a way to split the fee.
- Research the average cost of background checks to avoid getting overcharged.
- If unable to afford the cost, consider negotiating to pay for it in installments.
- If the landlord refuses to split the cost, weigh the cost against finding a new property.
Remember that it is essential to conduct background checks on potential tenants to ensure that the property is safe and maintained.
You can always negotiate with the landlord if you want the cost of background checks to be split.
Options For Conducting Background Checks
When it comes to renting a property, one crucial step is conducting background checks on potential tenants.
These checks help landlords determine whether a tenant has a history of evictions or criminal activity that may make them a risk to rent to.
Diy Background Checks For Landlords
Landlords who opt to conduct their own background checks can do so by using online databases or visiting local government offices. Here are the key points to keep in mind:
- Online databases offer a convenient and affordable way to conduct background checks. Some popular options include been verified, Intelius, and Truthfinder.
- Landlords can also visit local government offices, such as courthouses or police stations, to obtain public records. This option may be more time-consuming, but it can offer more detailed records.
- Diy background checks can be cost-effective for landlords, but they should keep in mind that not all records may be available through these methods.
Professional Screening Services For Landlords And Tenants
Another option for conducting background checks is to use professional screening services. Here are some key things to consider:
- Professional screening services can offer a more comprehensive background check, including credit reports, criminal history, and eviction records.
- Landlords can require tenants to pay for the background check, or they can choose to pay for it themselves.
- Tenants can also use these services to conduct their own background checks and provide reports to landlords.
The Benefits And Drawbacks Of Each Option
Both daily background checks and professional screening services have their benefits and drawbacks. Here’s a brief summary of each option:
Diy background checks:
- Pros: Cost-effective, convenient, and quick.
- Cons: Limited to public records and may not include all relevant information.
Professional screening services:
- Pros: Comprehensive, thorough, and can provide a more detailed background check.
- Cons: More expensive, can take longer to receive the results, and may require tenants to provide sensitive personal information.
Frequently Asked Questions On Who Pays For Background Check Tenant Or Landlord?
Who Typically Pays For A Tenant Background Check?
It depends on the landlord-tenant agreement; however, usually, the tenant pays for it.
Can A Landlord Pass The Cost Of A Background Check To A Tenant?
Yes, but it must be specified in the lease agreement and comply with state law.
How Much Does A Background Check Cost For Renters?
The cost of a background check for renters varies and can range from $20-$50 per tenant.
What Do Landlords Look For In A Tenant Background Check?
Landlords mainly look for negative behaviors, criminal records, credit scores, and rental history.
Conclusion
Taking the leap into the rental market, you should be ready to shoulder background check costs. Usually, it’s the prospective tenant’s responsibility, not the landlord’s.
This way, you’re putting your best foot forward, demonstrating transparency and trustworthiness from the outset.